US Securities and Exchange Commission Chair Mary Jo White told a US House of Representatives panel that she flatly rejected claims that retail investors are being fleeced by high-frequency traders who can use their speed to jump ahead with buy and sell orders that fetch better prices. "The markets are not rigged," says White. "The U.S. markets are the strongest and most reliable in the world." White's comments to the House Financial Services Committee mark the first time she has directly responded to allegations in Michael Lewis' new book "Flash Boys: A Wall Street Revolt" that high-speed traders are engaged in a form of front-running, in which the firms are able to quickly identify an investor's desire to buy a stock, rush to buy it first and then sell it back at a higher price. The SEC has been reviewing equity market structure issues, particularly following the May 6, 2010 flash crash incident when the Dow Jones Industrial Average sharply plunged before quickly rebounding. Although staff at SEC are considering whether to launch some pilot studies to test different regulatory proposals, there are no immediate plans to issue rules to crack down on high-speed trading or trading in unlit markets. "I want to be very clear that the market metrics suggest that the retail investor is very well-served by the current market structure."
(Score: 1) by infodragon on Friday May 02 2014, @10:12AM
There is the spirit of the law and the letter of the law. If I hear you right you are speaking in regards to the spirit of the law. I have a beef with those in violation of the spirit of the law as well, however I do my utmost to devote any energy into those creating the law rather than those in violation of the spirit of the law. The utter stupidity of many of the finance laws is incalculable. It irks me to no end that the law is created without the consultation of true experts rather than those who have the expertise of lining their pockets with the manipulations of legal systems (lobbyists)
Don't settle for shampoo, demand real poo!
(Score: 2) by sjames on Friday May 02 2014, @05:41PM
Yes, I speak of the spirit of the law. I believe we are in agreement on this point. Finance needs to be regulated, but those regulations need to be sensible. They are not sensible today.
(Score: 1) by infodragon on Friday May 02 2014, @05:53PM
That is an understatement! The more complexity the more unintended consequences. Introduce simplicity then it is easier to enforce the law, meaning current resources for prosecution become much more effective.
Don't settle for shampoo, demand real poo!
(Score: 2) by sjames on Friday May 02 2014, @07:23PM
I believe the complexity is deliberate and driven by the large players. They WANT complex regulations that small players and newcomers can't afford to figure out how to comply with that at the same time present loopholes than an established player with a large legal department can play in.